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Victoria's government is pushing ahead with a zero-interest financial offering aimed at encouraging quicker uptake of solar energy storage.
The home battery rebate effectively offers households interest-free, four-year amortising loans of amounts up to $8800.
Key points (TL;DR) :
Victoria is cutting the popular home battery rebate in favour of more accessible interest-free loans for solar energy storage.
This green initiative offers households loans up to $8800 over a four-year amortising plan.
Solar panel installation costs fall within a range of approximately $8000–$17,000. These loans may, in some instances, cover costs entirely.
Considering the $1400 solar rebate, the loan program offsets expenses amount approximately $11,600.
Increased self-consumption of solar power by nearly 60% and usage reduction of grid power can lead to annual energy savings of almost $1500.
200,000 customers are already reaping the benefits of the scheme.
The initiative is a pivotal step towards national cleaner-energy goals and aims to lessen the upfront cost burden of installing solar storage.
What's in it for you?
Solar panel installation rates fall within the range of approximately $8000 for a 6kWh battery, up to nearly $17,000 for an 11kWh system, as recorded by Solar Victoria.
The $1.3 billion initiative which offers $8800 amortised over a four-year period, when added to the $1400 solar rebate already in place, could cover full solar installation costs entirely for some.
This battery loan is also an option for homeowners who have previously received rebates or finance towards installing solar panels.
Installing the storage solution advances the self-consumption of solar energy in households by almost 60%.
Will it pay off?
Households increasing solar power and reducing the demand for grid electricity could save up to $1500 on energy bills annually – an appealing return on investment in the span of 7–10 years.
"Interest-free battery loans allow for greater access to cheap, reliable, renewable energy and place a significant dent on the upfront cost burden of installing battery storage," says Victorian energy minister Lily D’Ambrosio.
"To achieve our nation-leading renewable energy target of 95 per cent by 2035, it is vital households transition to running on cheap, reliable, renewable energy."
Stan Krpan, the chief executive officer at Solar Victoria, says the loan scheme increases accessibility due to the extended repayment tenure and enhanced energy savings in the long run.
“We have observed that two-thirds of these customers avail these interest-free loans simultaneously while applying for rebates,” added Krpan.
The Bottom Line
More than 200,000 Victorians have already applied for a Solar Victoria rebate.
Switching to solar can save you over $1000 every year on your energy bills.
Apply for your Solar Victoria rebate at www.solarvictoria.vic.gov.au
Go deeper: The dos and don'ts of going solar
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
